Com Hem

An operator in change

Anders Nilsson, CEO

Mikael Larsson, CFO

Key growth driversContinued progress in Q2

To grow revenue of the

overall business in the

mid-single digits year-on-

year.

Continued transformation of Phonera with focus on higher margin on-net

sales and SME. OnNet B2B customers grew by 3 000 during quarter.

Leverage B2B opportunity5

Capitalize on unique bundle opportunity4

Drive DTV penetration with Superior DTV product2

Leverage network and speed advantage3

A very low churn increase of 0.4 p.p during a quarter with price changes

reaching 50% of the customer base reflects a rapid and positive

development in customer satisfaction.

Broadband subscriber base grew by 8,000 net additions to a record high of

637,000 RGUs.

Digital TV grew by 2,000 to 627,000 RGUs, TiVo penetration reaches

33.0% with 204,000 RGUs.

Steady increase of bundles, now representing 50.9% of customer base

(50.7% in Q1).

Increased customer satisfaction1

Guidance

Well positioned for growth2

Cashflow growth is outperforming EBITDA growth,

which gives possibility to increase debt and still be

within target leverage. This results in more room for

shareholder remuneration in cash and/or buybacks

4

CAPEX stable, declining as% of revenue

2

3

Yield growth aheadImproving financial flexibility

Revenue growth increases underlying EBITDA1

The underlying EBITDA margin is

expected to soften slightly due to

a shift in business mix.

Capital expenditures as a

percentage of revenue is

expected to decline to a level that

is more in line with the industry

average.

Target leverage of 3.5x to 4.0x

LTM underlying EBITDA.

Guidance

Reduced interest expenses. Will come down from 4.5% to

approx. 3.5% after the refinancing in Q4 2015

No taxes to be paid until tax losses fully utilized (2.85 bn

SEK per 30 June)

3

Increased customer satisfaction enhances

pricing powerRecent price changes unveil stronger pricing potential than expected

Modest price

changes, 25% of

customer base

Modest price

changes, 50% of

customer base.

Reduction of discounts to increase ARPU

implemented during Q2, affecting

approximately half the customer base

Full ARPU increase will be visible during

H2 as price changes were rolled out

gradually during Q2

Only modest churn increase (0.4 p.p) as

a result of our focus on customer

satisfaction. Resulting in all time lowest

churn at 13.3%

Discount reductions and modest price

rises will give us the opportunity for an

enhanced growth strategy going forward;

price and volume vs volume only.

359 360 361 361 358 361

Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15

1.2%0.3% 0.1% 0.0%

-0.8%

1.1%

15.2%

16.4%

14.8%

14.2%

13.3%13.7%

Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15

Customer churn(%)

Consumer ARPU(SEK)

Churn impact + 1.2 p.p Churn impact + 0.4 p.p

Modest price

changes, 50% of

customer base.

4

595 599 607 618 625 627

570 577 594 612 628 637

327 326 329 337 342 337

Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15

Digital-TV Broadband Fixed-telephony

Shifting towards a more balanced growth From volume to a combination of volume and price-led growth

RGUs per quarter(000’)

We changed the way we grow the

company - from volume to a combination

of volume and price-led growth

We will continue to grow volumes, but at

a lower pace than previous quarters

Unique consumer subscribers grew by

6,000 during the quarter

Total consumer RGUs increased by 5,000

for the quarter to 1,600 000 RGUs

Broadband grew by 8,000 RGUs to yet

another all time high of 637,000

customers

Q-o-Q

1,5951,492 1,503 1,531 1,566 1,600

Unique consumer subscribers(000’)

Q-o-Q

838846

861

876

888894

Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15

+12+6

+16

+15

+8+8

5

1,198 1,210 1,229 1,228 1,246

Q2 14 Q3 14 Q4 14 Q1 15 Q2 15

Continued revenue growthRevenue growth of 4.0% Y-o-Y and 1.5% Q-o-Q

Increase in consumer revenue

driven by growth in broadband

and TiVo subscribers, improved

broadband tier mix and price

increases with gradual impact

during Q2

Landlord revenue decrease due

to contract renegotiations, lower

index pricing and 2014 one-off of

customer migrations to B2B

B2B OnNet shows good growth,

revenue up SEK 9m Y-o-Y.

However, decline in low margin

OffNet SoHo legacy business

+4.0%

(SEKm) Q2 15 Q2 14 Change Q1 15

Consumer revenue 936 877 58 +6.6% 914

Landlord revenue 175 196 (21) (10.9%) 179

B2B revenue 77 70 7 +10.7% 77

Other revenue 58 55 4 +6.7% 58

Total revenue 1,246 1,198 48 +4.0% 1,228

Revenue Q-o-Q(SEKm)

6

7

TV

Sweden’s richest TV offering…

Com Hem is embracing OTT as an opportunity as opposed to threat by integrating the

most popular OTT services in its platform

Catch Up 38 15 18 68 23 100

SVOD0 9 2

+ SVT Play

11 9

+ viaplay

22

TVOD 2 2 2 2 2 2

TVE Channels - 39 40 67 35 120

TVE Catch up - 0 18 16 0 94

TVE SVOD - 8 2 6 2 15

8

9

Com Hem Play The full TiVo experience on any platform anywhere

Launched September 2015

(updated version of TiVoToGo)

Updated user interface with

easier navigation

One-Click consumption

Pause function for linear TV

TV Guide with “on air & coming

up next” navigation

Part of the Com Hem TiVo

experience, included in the

Mid, Plus and Max

subscriptions.

Gives the customer the full

TiVo experience available on

all plattforms (iOS, Android,

webb) and devices.

Viewing time (min) among consumers per TV channel/OTT service,

15-74 yrs, Q1 2015

10

Embracing OTT as an opportunitySVOD growth is slowing down, most viewed OTT services on CH plattform

Com Hem acts as an aggregator

that offers different packages with

the most popular channels viewed

However SVOD growth pace is

slowing down after a period of rapid

growth

Average growth pace +5% QoQ

in 2015 compared to +21% in

2014

Household penetration SVOD subscriptions

+125%

0,4 m

HH

11%

0,9 m

HH

23%

1,1 m

HH

27%

+22%

Source: *Only part of the content

**Mediavision

* **

OTT DTV

0%

5%

10%

15%

20%

25%

30%

Q3 2012-Q2 2013

Q4 2012-Q3 2013

Q1 2013-Q4 2013

Q2 2013-Q1 2014

Q3 2013-Q2 2014

Q4 2013-Q3 2014

Q1 2014-Q4 2014

Q2 2014-Q1 2015

Q3 2014-Q2 2015

Boxer BBB⁴ CH Telia Viasat

11

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

50 55 60 65 70

Lo

yalt

y³

NKI value

Com Hem holds the lowest risk among all operators at approx 10%.

HHs planning to churn say they plan to switch operator, not leave the DTV market.

Loyalty/satisfaction matrix², Q2 2015

TeliaBoxer

Viasat

BBB

Com HemSales opportunity

Share of TV customers planning to cancel subs within one

year, CH universe

Low churn risk for Com Hem…while increasing among competitors

Source: Mediavision

12

Broadband

Sweden´s fastest broadband Superior infrastructure vs. competition in terms of capacity and speed

Well connected market with 88% broadband penetration in Sweden, HH 15-74 yrs old

Over 1.9 million HH´s connected, enabling us to offer our services to 40% of Swedish HH´s

Com Hem is the leading supplier of high –speed internet access in Sweden, according to Netflix speed index• Operates on Docsis 3.0• Offering up to 500 Mbit/s to appr.

1.7 million HH´s • Scalable and able to cope with

increasing data demand with modest capex investment including 1 Gbps upgrade

76% of new customers choose speeds of 100 Mbit/s and above in Q2

LAN overbuild largely completed given the largest landlords are already connected.

33%

13

Broadband speeds, CH subs. (%)

3

Broadband price comparison, Sept 2015 (SEK/month)

15%

10%

50%

~ 25%

Competing fixed infrastructure on

Com Hem Footprint

Broadband speeds

Com Hem Competition

xDSL Only

LAN FTTB

LAN FTTH

Open Net (FTTB/FTTH)

500 Mbps

500 Mbps

500 Mbps

100 Mbps -1 Gbps

20-60 Mbps

100 Mbps

1 Gbps

100 Mbps -1 Gbps

Coax

Universe

1 Gbps upgrade

when needed

Understanding Com Hem’s network advantageSweden’s no.1 superfast network & Europe’s fastest cable network

14

3

Households

Mobile and connected devices flooding the marketIncreasing demand for high speed broadband services

15

3

Consumer device penetration and infrastructure development, Sweden

Source: Mediavision

16

The best experience for the connected homeSuperior wifi experience with Com Hem’s new router

A download test made by Com

Hem shows that Com Hem´s

new router (Compal) has an

competitive advantage

according to a competitor´s

best router when getting the

most out of your Wifi

Com Hem´s router is the only

one in Sweden that offers two

frequencies (2.4 and 5),

resulting in little disturbance

when exposed by different

obstacles

Wifi router download speed (Mb/s)

3

Source: Internal test

17

The best experience for the connected home cont.Four times faster Wifi upstream & downstream than competition

Another test made by a

independent 3rd party,

Excentis, in Holland also

shows that Com Hem´s new

router (Compal) delivers up to

four times faster Wifi than

competition (27th of January

2015)

Highest measured upstream and downstream speeds (Mbps)

3

Source:Excentis

18

Bundling opportunities

Source: Company information

337

637

627

894

Triple Play Subs

Telephony Subs

Broadband Subs

DTV Subs

Unique Direct Customers

Homes connected

Opportunity

Opportunity

Opportunity

Opportunity

Growth Opportunity

Includes c.300k open LAN

households that Com hem can

contractually penetrate

Opportunity

~ 900k Basic TV subscribers

Upgrade to DTV & HD

Best value TV product

Great value bundles

~ 900k Broadband switchers

5x faster speeds for less

Targeting incumbent’s DSL

base

Owning ‘fibre’ vs LAN

~ 800k legacy telephony

Great value vs. incumbent

‘Highspeed broadband and

great value telephony’

1,930Homes as of Q2 2015 (‘000s)

(Coax) (LAN)

~375

~ 900

~ 800

Competitors subs. within footprint

Competitor subs within footprint

Competitor subs within footprint

Comp. subs

within footprint

xx

~ 375k Pay-Tv switchers

TiVo best in market DTV

product

Broadest content offer

Significant growth opportunitiesTargeting prospects within our network with a clear competitive advantage

19

4

Market wide open for bundling opportunities

Source: PTS, publicly available reports of respective companies

Triple play:

13%

Double play:

18%

Other¹: 6%

Full Coverage Partial Coverage

Key players do not have the network or the incentive to bundle

TV

Broadband

Telephony

Mobile

3P

M

2P/3P

M M M

1P1P(IPTV)

No fixed line network

3P

Incumbent DTH DTT Cable

(DTH)

Multi-platform

Mobile only

Exploring

MVNO /

MVNE

agreement

20

Com Hem is the only player focused on driving triple play subscriptions

Source: Filings of the respective companies

1) RGUs calculated as the sum of DTV, broadband and telephony RGUs divided by unique subscribers

Take-up in bundling will improve blended ARPU and is expected to drive down churn

Com Hem’s bundle penetration is low compared to peers and take rate in gross adds

As of Q2 2015

Q2

2015

Peers Base

Q2

2015

RGU /

Sub 11.8x 2.2x2.1x 2.5x2.3x

21

Triple play penetration lower than peersBundling push still to come, a great opportunity for Com Hem

22

B2B

130 000 Potential customers in Com Hem

Universe can be reached through Phonera.

Phoneras entry tier typically delivers twice the

speed at half the price compared to competition.

Penetration ARPU

46%

10%

361SEK

423SEK

Unexplored Business to Business opportunityThrough Phonera, Com Hem leverage on existing infrastructure in MDUs

6,2 6,5 6,5

13,8

31,2

Com Hem Telenet Ziggo VMED Numericable

B2B revenues / B2C revenues, H1 2015 (%)

B2B as next source of cable growth

No / low cost to connect

Abundant network capacity during the day

Source: Public filings of respective companies

1) Includes Wholesale

The attractive fixed and mobile B2B market is Com Hem’s next target source of growth fuelled by the acquisition

of the successful B2B operator Phonera

1

B2C

rev.

B2B

rev.

23

B2B Revenue(SEKm)

24

51 51 50 50 48

5 6 8 10 13

57 57 59 61 61

Q2 14 Q3 14 Q4 14 Q1 15 Q2 15

OffNet OnNet

65 66 68 65 63

5 7 9 12 1570 73 77 77 77

Q2 14 Q3 14 Q4 14 Q1 15 Q2 15

OffNet OnNet

Unique B2B Subscribers(000’)

Continued positive trend in B2BFocused sales activity drives OnNet customers

Strong OnNet revenue growth, from SEK

2m in Q1 2014 to SEK 12m

OnNet SoHo adding +2,000 unique

subscribers (2,000 in Q4)

Substantial growth opportunity as we

target the potential of 130,000 connected

SoHo businesses

OnNet margin substantially higher than

OffNet margin translates to higher

profitability and cash flow

Phonera/Com Hem was awarded Best

Mobile Swithboard in August 2015

according to the magazine Mobil

25

Financials

Slight pressure on gross margin

and underlying EBITDA margin

due to change in revenue mix

Improved EBITDA margin due

to lower non-recurring items vs.

Q2 last year

Continued positive net result

explained by higher EBITDA

and lower interest expenses

following last year’s balance

sheet transformation

Continued positive net result Strong improvement in EBITDA and reduced financial expenses

* Excluding non-recurring items, depreciation and amortization

(SEKm) Q2 15 Q2 14 Change Q1 15

Revenue 1,246 1,198 48 +4.0% 1,228

Production costs (367) (348) (19) (354)

Gross profit 879 850 29 +3.4% 873

Gross margin 70.6% 70.9% (0.4)p.p. 71.1%

Operating costs* (296) (284) (12) (297)

Underlying EBITDA 583 566 17 +3.1% 577

Underlying EBITDA margin 46.8% 47.2% (0.4)p.p. 47.0%

Non-recurring items (12) (149) 138 (39)

EBITDA 571 417 154 +36.9% 538

EBITDA margin 45.8% 34.8% +11.0p.p. 43.8%

Depreciation and amortization (389) (357) (32) (376)

EBIT 182 60 121 +200.8% 161

EBIT margin 14.6% 5.0% +9.5p.p 13.1%

Net financial expenses (126) (983) 857 (110)

Taxes (13) 204 (217) (11)

Net result for the period 42 (718) 761 n/m 40

26

Strong improvement in operating cashflowSignificant improvement in cash generated from operating activities

Interest payments

reduced by more than

70% and lower non-

recurring items

Total paid shareholder

remuneration of 400

mSEK during the

quarter

(SEKm) Q2 15 Q2 14 Change Q1 15

Underlying EBITDA 583 566 17 +3.1% 577

Non-recurring items and operating currency loss (3) (145) (39)

Change in net working capital (69) 31 (13)

Interest payments on borrowings etc. (139) (522) (52)

Adjustments for non-cash items 0 1 1

Net cash from operating activities 372 (69) 441 n/m 474

Gross capital expenditure (250) (239) (263)

Capital expenditure funded by financial leasing 15 - -

Acquisition of Phonera - (11) -

Net cash used in investing activities (235) (248) 13 -5.4% (263)

Borrowings 100 4,800 -

Amortization of borrowings (8) (6,252) (7)

Shareholder remuneration (400) - -

Payment of borrowing costs - (56) (11)

New share issue - 5,672 -

Other financial activities (1) 5 (21)

Cash flow from financing activities (309) 4,169 (4,479) -107.4% (40)

Net cash generated (used) (173) 3,852 (4,024) -104.5% 171

Cash Balance BoP 888 789 716

Cash balance EoP 715 4,640 (3,926) -84.6% 888

27

Capital Structure

28* Including SEK 100m in call premium for EUR bond

** Gross debt / (Equity market value 31 Aug + Gross debt)

► New senior bank debt of SEK 1 bn from DnB provided at attractive terms with four years maturity

► Following the intended early redemption of EUR bond in November, the group’s average interest

cost will be at approximately 3.5% (down from 4.5% in Q2)

Leverage and financing policy

29

Solid financial position with:

Leverage in line with European peers, target range of 3.5-4.0x Net-Debt/Underlying EBITDA

Well capitalized with SEK 1,3bn in cash and unutilized credit facilities.

Average interest rate on debt portfolio of 3.5% after refinancing

S&P BB- with positive outlook since June 2015

Healthy mix between bank and bond financing.

Strong support from Nordic as well as European banks. Building up recognition in SEK

bond market.

Will continue to work to extend our average debt maturity, currently at 3.7 years.

Mix of fixed and floating interest rates on debt, currently 45% fixed before refinancing of

EUR bond.

Shareholder remuneration

Redemption programme

SEK 65m was paid to shareholders May 11, 2015 for a

total of 886,221 shares that were applied for redemption

Buy-Back programme

AGM decided to extend this year’s buy-back

programme to up to SEK 1,500m (previously up to SEK

1,000m) including the SEK 65m already spent on the

one-time redemption programme

Cash dividend

SEK 1 per share in cash dividend

► A total of SEK 412m in shareholder remuneration in Q2 consisting of cash dividend

(SEK 1 per share) as well as share buybacks. As per 11th of September, shares for

an additional SEK 207m had been bought back.

► Leverage ratio to be kept within target of 3.5-4.0x underlying EBITDA

30

Average interest cost of

3.5%

Stable in absolute amount,

declining as % of revenue.

Increased underlying

EBITDA following revenue

growth.

Growth in underlying

EBITDA enables increased

leverage.

Market Cap August 31st – SEK 14,600m

Attractive yield available for cash dividend and/or share buy backs

Yield growth in Com Hem

* Q2 2015 annualised

** Pro forma for refinancing Q4 201531

Underlying EBITDA

CAPEX

Reduced interest expenses

Cash available for

shareholder remuneration

with no increase in leverage

Possibility to increase

leverage

Summary & outlook

Key growth drivers – continued progress in Q2

32

Yield growth ahead – improving financial

flexibility

33

Appendix

About Com Hem

Founded in 1983

Leading supplier of digital television, high-speed broadband and fixed

telephony in Sweden

One of Swedens richest and most aggregated TV offerings, exclusive

supplier of Tivo and Netflix

Offering up to 500 MB/s to appr. 1.7 million households

Leading supplier of high-speed internet access in Sweden, according to

Netflix speed index

76% of new customers choose speeds of 100 Mbit/s and above in Q2

Over 1.9 million households connected, enabling us to offer our range of digital

services to 40% of Swedish households

894.000 households subscribing to our broadband, DTV and telephony

services as of Q2 2015

1200 employees

New management in place

34

1) Acquisition announced on December 20th 2013, completed on March 31st 2014

2) Extension option at Com Hem’s discretion

Com HemIntroduced atOMX Nasdaq

Acquired by

Sep-11

jun-12

Best TV: TiVo & Netflix

Entry into lucrative B2B

Broadband upgrade

New, proven management team

Exclusive 5yr (+6yr extension option2)

agreement with TiVo

2013

Content agreements with key domestic and international

providers

Dec-13

Launch of B2B offering

Jul-13

Acquisition of Phonera1

Mar-14

Apr-14

Oct-13

Exclusive Netflix agreement, launch

of TiVo

Launch of 500 Mbps

broadband

Selective launch of 1Gbps broadband

Anders Nilsson appointed as CEO

Aug-14

50 Mbit/s new entrance speed with

free upgrade

June-14

New high speed router

Feb-15

Q1-15

All time lowest churn 13.3%

Phonera Cloud based switchboard

All channels available on TiVo to

Go

Business transformationSep 2011-present

35

Landlord business

Homes connected: 1,930k

Total revenues

Landlord

Operator

Tenant(Consumer)

Consumer (Tenant)

Digital TV Broadband Telephony

Com HemBusiness model

Financial metrics as of H1 2015

OtherB2B

5%75% 6% 14%

Consumer business

Unique subscribers: 894k

36

Customer Experience/Customer Service satisfied customers Churn falls over time

10%

13%

15%

18%

20%

23%

25%

2012 2013 2014 2015

Strong correlation between satisfied customers and churnSignificant product improvements and customer focus pays off

Launch of 500 Mbps

broadband

Exclusive 5yr (+6yr extension option)

agreement with TiVo

Exclusive Netflix agreement, launch

of TiVo

All channels available on TiVo to

GoSelective launch of 1Gbps broadband

50 Mbit/s new entrance speed with

free upgradeNew high speed

router

Content agreements with key domestic and international

providers

DTV product enhancements

Broadband product enhancements

Churn

37

0%

5%

10%

15%

20%

25%

30%

35%

40%

Q4 2012-Q3 2013

Q1 2013-Q4 2013

Q2 2013-Q1 2014

Q3 2013-Q2 2014

Q4 2013-Q3 2014

Q1 2014-Q4 2014

Q2 2014-Q1 2015

Q3 2014-Q2 2015

BBB² Com Hem Tele2² Telia

Source: Mediavision

Risk of churn, 4 quarters SMA¹

• Risk of churn: CH slightly lower in Q2 2015 (-20% YOY), long term risk however stable, 13% in the SMA scale (Q3 2014-Q2 2015).

• Other op’s (SMA): Telia’s trend of increasing churn risk decelerated. Tele2 churn risk continues to decline, still highest among ops.

• Loyalty/satisfaction: CH strengthens its position, whereas BBB and Telia receive lower NKI and loyalty scores.

30%

40%

50%

60%

70%

80%

90%

55 60 65 70 75

Lo

ya

lty

Loyalty/satisfaction matrix³, Average 4 quarters

NKI value

BBB²2014/2015

Tele2²

2014/2015

Telia

2014/2015Com Hem

2014/2015 2013/

2014

2013/

2014

2013/

20142013/

2014

Low churn risk for Com Hem relative competitorsShare of fixed telephony customers planning to cancel subs. within one year, CH universe

38

TiVo´s most popular functions

39

8%

9%

11%

11%

14%

22%

26%

26%

7%

7%

9%

10%

16%

23%

29%

31%

0% 20% 40% 60% 80% 100%

Smart remote

TiVo Tips

Wish list

Smart search

Integrated apps

TiVoToGo

Rewind in live programs

Triple recording

Use most regulary

2015-Q2

2014-Q4

99% of all homes connected to national backbone

Core network entirely IP based, 10×10 Gbit/s

Parallel, non-conflicting services

Redundant systems in playout and backbone

High proportion of network elements leased

All active equipment are owned by Com Hem

Future capex predominantly success-based

Fully-invested and upgraded network Highly cost efficient operation

HFC network• Coax and equipment owned

• Last mile owned

• Fibre and ducts leased

In-house network• Wiring owned by Landlord

• Upgraded by Com Hem

• Equipment in basement owned

O/E ..

..

Backbone• Wavelength leased

(Swedish Transport

Administration)

Fibre

Coax

CMTS

DTV

ATV

SVT1, SVT2, TV4

TV3, Kanal 5

.

”The last mile”

O/E

Telephony

Broadband

Digital TV

Analogue TV

.

Duct

Modem

STB

Local Headend• Equipment owned

• Colocation leased

Router .

The hybrid-fiber-coax (HFC) network

40

2.6 M2.0 M

MDU

Com Hem Other MDU

DSL covers

almost all SDU

Com Hem reaches

73% of the MDU

Market

27%

SDU

DSL Fiber or Coax

35%

~100%

In 35% of the HHs

DSL is overbuilt by

either Fiber or Coax

SDU MDU

57% of Total

Market

~ ~

4.6 Million households in MDU and SDU marketCom Hem reaches 40%

41

42

Thank you!

For questions please contact:

Caroline Tivéus, IR-Manager

Mob: +46 73 439 08 67

Mail: caroline.tiveus@comhem.com